Customer loyalty: learn all about its importance for business
Posted: Sat Dec 07, 2024 9:19 am
A customer loyalty strategy is, in a nutshell, a solid base of people who will always be willing to buy from you and, what's more, will recommend your product or service to their closest group of acquaintances. Find out all about this marketing and sales technique by reading this content!
Luis Herrera
Apr 1, 22 | 7 min read
Customer loyalty: why it matters
Reading time: 6 minutes
Customer loyalty , three words that will change your life in your business. Increased profitability, how to sell more, high ROI, effective marketing strategy , successful SEO and new customers are within your reach.
Find out once and for all why you should take care of the clients you already have and, thus, be able to earn a lot from them.
Keep reading!
Customer loyalty: What is this concept about?
Customer loyalty is, by nature, a marketing and list of tonga consumer email ales strategy that seeks to recognize and reward people who have consistently purchased or interacted with a brand.
A good technique is, for example, to distribute points or benefits and graduate customers to higher levels of loyalty the more they buy.
These are incentives and benefits that commonly turn a potential customer into a regular consumer or, better known as: "brand ambassador."
Some of the benefits that organizations most commonly apply may include:
free merchandise;
rewards;
coupons or internal benefits;
as early access to new products.
With this as a premise, you can already imagine that this concept is fundamental for companies, and you are not wrong, now we will tell you exactly why.
What is its importance within marketing and sales strategies?
Imagine for a moment that a customer is loyal to your brand and every time you develop a new product, or add value to your services, they seek to buy from you and, even if they don't, they recommend you to their inner circle of friends. In other words, they become an ad honorem brand ambassador - they do it without expecting anything in return!
In fact, personalized referrals generate twice as many sales as paid advertising. That's a win-win, don't you think?
Without a doubt, a marvel. This is just one point where we observe its importance within an inbound marketing and sales strategy. Now we are going to detail 3 more factors that make customer loyalty the icing on the cake in your results-oriented planning.
1. They build an emotional connection
Loyalty programs drive sales and increase customer lifetime value. At the most basic level, that’s done through incentives; but there’s something deeper going on here, and the emotional connection they foster can be even more important.
Customer loyalty helps build emotional engagement through repeat behavior. However, a creative approach to the offers you make can do more. Curating a large number of third-party promotions (access to restaurants, movie theaters, spas, and retailers) has the potential to create a community and a “lifestyle” perception that helps emotionally connect customers to your brand.
If you manage to associate this with personalization, the impact is even greater, such as creating a blog where you seek to reach your target audience.
As a great example, there's NikePlus , Nike's mobile loyalty program.
Members use the Nike branded app to access birthday rewards, member-exclusive products and content, invitations to offline events and online workouts.
As you can imagine, this program was a huge success. Nike Plus members reportedly spend 3 times more than non-member shoppers.
2. Repeat customers have a high ROI
It costs 5 times more , on average, to acquire a new customer than to retain an existing one. Existing customers are 50% more likely to try a new product and spend 31% more per purchase than new customers.
While marketing and sales efforts aimed at reaching potential customers are essential for growth, retaining them is where the long-term value lies. If we don't manage a positive retention rate, we're more likely to be replaced and go to the competition.
Encouraging loyalty through loyalty building is essential to avoid high churn rates and retain high-value customers.
Luis Herrera
Apr 1, 22 | 7 min read
Customer loyalty: why it matters
Reading time: 6 minutes
Customer loyalty , three words that will change your life in your business. Increased profitability, how to sell more, high ROI, effective marketing strategy , successful SEO and new customers are within your reach.
Find out once and for all why you should take care of the clients you already have and, thus, be able to earn a lot from them.
Keep reading!
Customer loyalty: What is this concept about?
Customer loyalty is, by nature, a marketing and list of tonga consumer email ales strategy that seeks to recognize and reward people who have consistently purchased or interacted with a brand.
A good technique is, for example, to distribute points or benefits and graduate customers to higher levels of loyalty the more they buy.
These are incentives and benefits that commonly turn a potential customer into a regular consumer or, better known as: "brand ambassador."
Some of the benefits that organizations most commonly apply may include:
free merchandise;
rewards;
coupons or internal benefits;
as early access to new products.
With this as a premise, you can already imagine that this concept is fundamental for companies, and you are not wrong, now we will tell you exactly why.
What is its importance within marketing and sales strategies?
Imagine for a moment that a customer is loyal to your brand and every time you develop a new product, or add value to your services, they seek to buy from you and, even if they don't, they recommend you to their inner circle of friends. In other words, they become an ad honorem brand ambassador - they do it without expecting anything in return!
In fact, personalized referrals generate twice as many sales as paid advertising. That's a win-win, don't you think?
Without a doubt, a marvel. This is just one point where we observe its importance within an inbound marketing and sales strategy. Now we are going to detail 3 more factors that make customer loyalty the icing on the cake in your results-oriented planning.
1. They build an emotional connection
Loyalty programs drive sales and increase customer lifetime value. At the most basic level, that’s done through incentives; but there’s something deeper going on here, and the emotional connection they foster can be even more important.
Customer loyalty helps build emotional engagement through repeat behavior. However, a creative approach to the offers you make can do more. Curating a large number of third-party promotions (access to restaurants, movie theaters, spas, and retailers) has the potential to create a community and a “lifestyle” perception that helps emotionally connect customers to your brand.
If you manage to associate this with personalization, the impact is even greater, such as creating a blog where you seek to reach your target audience.
As a great example, there's NikePlus , Nike's mobile loyalty program.
Members use the Nike branded app to access birthday rewards, member-exclusive products and content, invitations to offline events and online workouts.
As you can imagine, this program was a huge success. Nike Plus members reportedly spend 3 times more than non-member shoppers.
2. Repeat customers have a high ROI
It costs 5 times more , on average, to acquire a new customer than to retain an existing one. Existing customers are 50% more likely to try a new product and spend 31% more per purchase than new customers.
While marketing and sales efforts aimed at reaching potential customers are essential for growth, retaining them is where the long-term value lies. If we don't manage a positive retention rate, we're more likely to be replaced and go to the competition.
Encouraging loyalty through loyalty building is essential to avoid high churn rates and retain high-value customers.